US Technology
All eyes on China Despite China’s slow GDP growth this first quarter, US-based players in the chemicals industry remain fearless of the shrinking demand as they continue to leverage new and existing solutions to further expand their market footprint. Two words were prominent during this year’s Chinaplas exhibition: investments and product developments, with higher demand of goods anticipated over the medium to longterm owing to strong consumer spending and urbanisation in China, says Lyn Cacha in this report.
In nonwovens, ExxonMobil’s Vistamaxx elastomers are inspiring breakthroughs
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he general sentiment in the material suppliers and processing community is to do more with less, especially with downgauging, wherein the amount of material in a packaging is reduced while still maintaining or even improving the properties. Improved plastics offer tremendous downgauging opportunities, emphasised Haridass Kalidas, PE AP Market Development Manager of ExxonMobil Chemical. According to Kalidas, consumers are demanding more sustainable film products made from fewer resources. And at the same time, they are not inclined to accept any loss in performance of the packaging material, forcing processors to come up with material solutions to solve these requirements. To showcase its Exceed and Enable metallocene polyethylene (mPE) resins, the company was running the resins on machines in various halls. A three-layer 70 micron collation shrink packaging film using Enable mPE resin was shown at Sun Centre’s booth; a three-layer 125-micron film for heavy duty sacks using Exceed and Enable mPE resins was shown at HanKing’s booth; three-layer 50-micron packaging film using an Enable mPE/C4 LLDPE resin blend was processed at Hubei Light Industry’s booth and three-layer solution using Vistamaxx-based filler masterbatch for HDPE film for shopping and garbage bags at HuaShan’s booth. “The resins have improved processability for our customers, in terms of optics and colour. More importantly, processors are able to downgauge – to make films thinner using less materials and using less energy to make the same products with much better properties,” added Kalidas. For nonwovens, the firm’s Vistamaxx propylene-based elastomers are inspiring breakthroughs while enhancing performance at reduced costs. “Aside from the ability to downgauge, the other unique attribute that Vistamaxx brings is softness. You feel the film, it is PP-based but it has the softness and elasticity that is important in films. For instance, when making diapers, you want it to be soft with no noise,” said Anthony Soo, Vistamaxx Films Global Business Development Manager. In terms of expansions, ExxonMobil is bolstering its petrochemical operations in Asia, doubling its integrated petrochemical complex in Singapore by a capacity of 3.6 million tonnes and streamlining processes at its Chinese facility in Fujian. In Singapore, it is adding on 1 million tonnes of ethylene; 1.3 million tonnes of PE; 500,000 tonnes of PP; 300,000 tonnes of speciality elastomers; 340,000 tonnes of benzene and 125,000 tonnes of oxo-alcohol. In Fujian, it is debottlenecking the steam cracker and its derivative units. It is also planning to enhance processing of light feedstocks to help strengthen its integrated PE position and expand capability to meet global demand growth. Meanwhile, its fully operational Shanghai Technology Centre (STC) occupies 27,000 sq m and is equipped with more than 200 types of equipment as well as commercial and pilot scale lines. Resin design and testing emphasised With the many available solutions that enable downgauging, Dow Chemicals says that resin design and consumer testing are essential to help the processor determine which materials will work best for different applications. According to Dow, it has done a study and discovered that customers do notice the changes, such as feel and thickness, and that material processors are placed in a difficult spot wherein they need to anticipate brand owner, retailer and consumer expectations. When downgauging, Dow recommends that processors should consider choosing the right resin design; utilising a high bending modulus and doing minor (i.e., 5%) gauge reduction. In the end, the processor must ensure that the consumer packaging company and consumers cannot tell the difference made to render a more sustainable package.
US Technology Dow was promoting its Elite Advanced Technology PE resins that are said to deliver toughness in film structures, while at the same time rendering thinner films. The company has also developed a tool that calculates and uses other application-specific data, such as the need for high seal strength, optics or toughness – to determine the arrangement of the materials and layers. Aside from the packaging industry, lightweighting in the transportation segment is another focus for Dow. The replacement of metal with plastics helps the car consume less energy; and downsizing with plastic parts getting thinner and lighter with new technologies and materials can help to maintain or enhance mechanical properties. Catering to the growing automotive market China’s automotive sales jumped 24.5% to 1.57 million units in February plus automotive makers that rely heavily on the Chinese market posted strong monthly sales despite higher petrol prices and lower spending on discounts and promotions. In view of this, companies like Sabic Innovative Plastics are increasing their investments in China, especially in engineering plastics. In a joint venture with Sinopec, the firm is building a 260,000-tonne/ year PC compounding plant in Tianjin. The US$1.7 billion facility is expected to come on stream in 2015. “Growth for PC in China is coming where customers are going so with the government’s Go West policy, we are committed to extending our footprint to serve the customer base,” said Alan Leung, Vice-President of Innovative Plastics Asia Pacific. He also noted that China produced only 220,000 tonnes of PC in 2010, importing most of the 1.13 million tonnes consumed in the country. The firm is also setting up an engineering thermoplastics compounding plant in Chongqing, which is already established as an important industrial hub for global computer, consumer electronics and automotive manufacturers.
The plant will come on stream next year. Furthermore, last year it invested in new production lines at both its Shanghai and Nansha facilities that produce PC resins and films. When asked about the growth, he said, “The market picked up after the rebound started in the second half of 2009 and we are now 3-6 months ahead of recovery.”
Other investments are focused on R&D, with a technical centre that is ongoing. “A new feature of this centre includes the Automotive Innovation hub to drive next-generation materials solutions,” said Leung. The US$100 million technical centre will focus on advanced engineering plastics materials that can be used in a broad array of industries.
US Technology “The main market focus for us is the consumer electronics, appliances, automotive and infrastructure-related sectors,” said Leung. With this in mind, the firm introduced a CFR (clear flame retardant) copolymer for consumer electronics and appliances. The new CFR caters to 1.5 mm notebook Alan Leung, computers and 0.8-1.2 mm tablet covers. says that China’s It complies with the UL94 V-0 standard electronics, down to 1 mm and the UL94 5VA standard automotive, at 3 mm. construction Additional applications include and new energy electrical transparent housing, covers on sectors are boosting demand refrigerators and other appliances and for PC stationary electrical parts like display panel, buttons, switches and decoration parts. Meanwhile, the firm introduced three new Lexan LUX resin grades for light guides and lenses, said to retain more than 98% of initial light transmission when exposed to a temperature of 130°C for more than 5,000 hours. At more typical heat exposure in the range of 90-110°C, the transmission retained is higher. They also provide improved light transmission (10 units better, compared to competitive products) after heat ageing at low wavelengths typical of LED systems. Speeding up application developments Another company that has its eye on R&D is DuPont Performance Polymers. Since its establishment in 2005, DuPont’s China R&D centre has played an important role. As the fifth (others are South Korea, India, Taiwan and Thailand) R&D centre outside the US, it provides technical support to most market segments, said James Hay, Regional Director for Performance Polymers in Asia Pacific. In view of the growing demand, the facility will be doubled by next year, he added. “We notice three megatrends of food, energy and protection emerging, with energy being the largest contributor to growth,” said Hay adding that this is the direction the firm is heading in the automotive sector. With the automotive market accounting for half of its business in China, DuPont has also placed importance on this sector and last year it opened a dedicated automotive centre. “In line with the government’s five-year plan to reduce CO2 in China, we see the trend for turbocharged and smaller engines growing,” he said, adding that further work is being done with automotive makers to achieve this. In terms of products, Hay says the firm’s Zytel nylons are the fastest growing in China. Expecting demand to increase, DuPont is increasing capacity for its nylons. Last year, the company announced plans of building a Zytel HTN polymerisation facility at its Sakra site in Singapore. This complements capacity expansions at the Shenzhen site in China for Zytel HTN and Zytel nylon. James Hay says that the firm is pleased with the double-digit growth rate for its nylons, especially in China, Taiwan and Japan
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“DuPont is the only nylon producer with polymerisation facilities in all the regions of the world. This focused reliability allows for an end-to-end global supply chain, thereby improving lead time for manufacturers,” said Hay. The expansion of the Singapore Zytel HTN facility to 20,000 tonnes/year will be completed by 2014, with the capacity targeted at the Southeast Asian and Chinese markets. “Outside the automotive sector, Zytel HTN has seen growth in water pumps, housings and hand held devices because of its higher temperature properties,” said Hay. At the Chinaplas, the company showcased an example of inclusive innovation in the Chinese automotive industry, collaborating with local car maker Chery to develop renewable materials and lightweight components to enhance energy efficiency. Meanwhile, in consumer electronics, Zytel HTN has been adopted by Lenovo for several of its laptop models, which helped the manufacturer to meet the 3C industry trends, increase the consumer affordability and further raise the bar of product performance. Asian investment to cater to global demand Improving patient safety is a major concern for most material suppliers for the medical industry. Since PVC and phthalates are conceived as unsafe when in human contact, Kraton Performance Polymers was promoting its latest styrenic block copolymers (SBCs) as alternatives. The products, which have the ability to be sterilised and are US FDA and Pharmacopeia approved, are targeted at applications in medical, wire and cable, faux leather and automotive interior slush moulded soft skins. Holger Jung, Vice-President of Sales and Marketing also shared the firm’s plans of doubling its Cariflex latex Holger Jung manufacturing capacity by mid-2013. says revenue The expansion will take place in two generated from phases, each adding about 1.5 million innovationtonnes. based sales Furthermore, Jung said the firm reached 14% is strengthening its presence in Asia globally last through the establishment of a new year, with China to surpass 30% innovation centre in Shanghai. “The 32,000 sq ft facility will be three times larger than the previous one and staffed with technical experts.” He also added, “The facility will be designed to support our SBCs, Cariflex IR and IR latex with capabilities such as wet chemistry, flame testing and rubber processing.” Other investments in Asia include a 50:50 joint venture with Taiwanese firm Formosa Petrochemical to set up a 30-kilotonne hydrogenated styrenic block copolymer (HSBC) plant in Mailiao, Taiwan, by 2014. According to Jung, once the facility is completed it will provide significant additional supply capability. “It will also allow us to provide a platform to launch a series of new innovative polymers, to serve the impressive growth plans of our Asian and global customers,” he said.